Apple is Opening Up the iPhone's NFC Chip: What You Need to Know

[MacRumors]

With the launch of iOS 18.1 this fall, Apple will allow third-party developers to support NFC contactless transactions for payments and more. Right now, the NFC chip is locked down, and it's primarily only used for Apple Pay, but a number of new capabilities will be coming when Apple expands access to NFC.

NFC Capabilities in Third-Party Apps

With NFC access, banks will be able to offer direct contactless payment options that serve as an alternative to Apple Pay, but it app developers will be able to do more, too. Some ways Apple says NFC can be used:

• Contactless payments in stores
• Car keys
• Closed-loop transit cards
• Corporate badges
• Student IDs
• Government IDs (coming in the future)
• Home keys
• Hotel keys
• Merchant loyalty and reward cards
• Event tickets

Security Protections

Apple is creating several new APIs that will power the contactless transactions. The APIs will use the Secure Enclave in the iPhone, with sensitive information stored directly on device.

Developers will have to request access to the NFC and Secure Enclave entitlement, sign a commercial agreement with Apple, and pay associated fees. Apple plans to make sure that only authorized developers who meet regulatory and industry requirements and commit to Apple's security and privacy standards can get access to the APIs.

Default Contactless App Options

Once these features go live, iPhone users can open up the app and then hold the iPhone near an NFC terminal to make a payment. So if you want to pay at a store using your bank's NFC payment service, you'd open your bank app and then double-click the side button on the iPhone to initiate a transaction.

Third-party apps will also be able to be set as default contactless apps in the iPhone's Settings app.

Transactions will be verified with Face ID or Touch ID.

Apple Pay and Apple Wallet

The NFC APIs are separate from Apple Pay and Apple Wallet, which is why you will need to open up a third-party app to use its NFC capabilities.

Available Countries

Apple's NFC and Secure Enclave APIs are coming to developers in Australia, Brazil, Canada, Japan, New Zealand, the UK, and the United States.

Support will come to additional locations in the future.

Apple already opened up the NFC chip in the European Economic Area.

iOS 18.1 Launch Date

The new APIs will launch in iOS 18.1, which is an update that Apple is testing at the current time. iOS 18.1 will likely be released a few weeks after iOS 18, and we are expecting to see it sometime in October.

In past years, .1 updates have come out between October 20 and October 25, so the week of October 21 is likely when we will see iOS 18.1 come out.

Article Link: Apple is Opening Up the iPhone's NFC Chip: What You Need to Know

 

[Havalo]

Tim must be loving EU 😂

 

[The Apple Bitch]

.. a number of new capabilities will be coming when Apple expands access to NFC...

Absolutely love this, iPhone will be one step closer to the everyday everything tool!

 

[arc of the universe]

yes. this will be great.

but this Macrumors article says that you will need to actually open up the 3rd party app to access this function.
"you will need to open up a third-party app to use its NFC capabilities."

however, in today's 9to5 mac top story it clearly says this:
"Apple says that users will be able to set a third-party app as their default contactless app via the Settings app on their iPhones."

i hope that a user can indeed set a 3rd party app payment system as its default payment method.

 

[BelgianChoklit]

To celebrate NFC in the iPhone's 10th year anniversary...

 

[Piggie]

Wonder if Apple will require a 30% cut of each transaction in order to use this feature

 

[Chuckeee]

Is this purely a software mod or is it dependent on certain hardware elements too?

 

[Vol Braakzakje]

This is one of the good things that the Europeans union has brought.

Hope devs will get creative with this and hopefully all transport systems in the world will use this. That will make travel so much easier in foreign countries.

 

[klasma]

yes. this will be great.

but this Macrumors article says that you will need to actually open up the 3rd party app to access this function.
"you will need to open up a third-party app to use its NFC capabilities."

however, in today's 9to5 mac top story it clearly says this:
"Apple says that users will be able to set a third-party app as their default contactless app via the Settings app on their iPhones."

i hope that a user can indeed set a 3rd party app payment system as its default NFS payment method.

I’m a bit surprised that NFC wouldn’t allow for some smart selection like “app x is in charge of device/use-case y”.

 

[ZebraDude]

...(wondering if the Apple Watch NFC's will ever be opened up)?

 

[CharlesShaw]

I'm mentally preparing myself for my grocery store (Kroger--which just recently began accepting Apple Pay) withdrawing from Apple Pay and creating an NFC app that can only be funded by debiting my bank account.

 

[sw1tcher]

With the launch of iOS 18.1 this fall, Apple will allow third-party developers to support NFC contactless transactions for payments and more. Right now, the NFC chip is locked down, and it's primarily only used for Apple Pay, but a number of new capabilities will be coming when Apple expands access to NFC.

With NFC access, banks will be able to offer direct contactless payment options that serve as an alternative to Apple Pay

Will users of other contactless payment methods have to deal with a review prompt every 30 days that reminds users that those other contactless payment methods have access to Apple's their NFC chip?

 

[jiminycricket]

Honestly this kind of sucks. Having a single wallet that has all cards in it is a big plus, making it very easy to switch what card you'll use each time (double click side button, swipe to change card). if card issuers start abandoning wallet and doing their own thing, you could have a single card as default, but to get to other cards you'd have to unlock the phone, open the app, and then you could pay.

 

[BenGoren]

This is one of the good things that the Europeans union has brought.

Hope devs will get creative with this and hopefully all transport systems in the world will use this. That will make travel so much easier in foreign countries.

New York City actually has this dialed in perfectly right now, already.

Tap the turnstile with any valid tap-to-pay method (plastic card in your wallet, any vendor’s phone with NFC, even Apple Watch without double-click when in “Transit Mode”) and you’re charged the regular fare. Keep using that same method, and the gate opens without charging after you’ve paid for enough rides for a standard weekly unlimited fare pass.

No need for any app, for any special fare card, anything like that.

(Those who qualify for reduced or free fares can get an MTA tap-to-pay card with suitable pricing and manage it online or through their app. Prominent and ubiquitous signage makes it seem like this is trivial, though I don’t personally know.)

Before encountering OMNY (this new system), far and away the best transit payment I had personally used was Suica in Japan. You buy a card with some value on it, and then you either tap with the card or add the card to Apple Wallet and use the phone or watch. Any time it runs low, you can add more value right from Wallet. As a bonus, most convenience stores and many others also accept Suica. Some US cities use a similar system, but only for transit (best I know).

But OMNY “just works,” for anybody and everybody.

b&

 

[ifxf]

I'm mentally preparing myself for my grocery store (Kroger--which just recently began accepting Apple Pay) withdrawing from Apple Pay and creating an NFC app that can only be funded by debiting my bank account.

Alternatively, they charge you extra for using your credit card. I like Cumberland Farms where they give you a discount for paying by their app which is linkec to your bank account.

 

[MauiPa]

I can’t imagine any security vulnerabilities here (LOL). Facebook was caught deliberately draining batteries, so yah no third party would deliberately weaken security (LOL). As long as I can leave it off always, won’t be a concern for me. The best solution I ever heard about for these back door attacks was to provide large payouts to effected parties from the culprits (of course requires bonding to get access). “You did what?” Then send me $10k or go to jail

 

[jayducharme]

Apple plans to make sure that only authorized developers who meet regulatory and industry requirements and commit to Apple's security and privacy standards can get access to the APIs.

That's a great goal, but I suspect implementing it will be tricky. There are probably nefarious entities out there who would love to get access to that "Secure Enclave".

 

[loopy123]

I don't really see much value in this. You can tap to pay with ANY credit card right now using Apple Wallet. And a vendor can accept payments with a tap of your iPhone ( no need for a separate terminal) . Apple has taken care of the transit card "tap to pay".

So what exactly can some other NFC payment system bring to the table apart from let the EU do a fist pump for forcing Apple to do something.

 

[Wanted797]

Wonder if Apple will require a 30% cut of each transaction in order to use this feature

Being Australian where our big 5 banks tried to sue Apple twice to get access to NFC so they could get around Apple Pay fees I really hope it’s the same cost.

If my bank decides they would rather break the existing wallet setup for clunky direct apps I’ll be finding a bank who actually supports Apple Pay.

 

[loopy123]

Alternatively, they charge you extra for using your credit card. I like Cumberland Farms where they give you a discount for paying by their app which is linkec to your bank account.

Right, so you have given some entity full access to drain your bank account. You realize you have NO protection if that happens, unlike with a credit card.

 

[loopy123]

Being Australian where our big 5 banks tried to sue Apple twice to get access to NFC so they could get around Apple Pay fees I really hope it’s the same cost.

If my bank decides they would rather break the existing wallet setup for clunky direct apps I’ll be finding a bank who actually supports Apple Pay.

A lot of commentary is talking as if the only contactless payment is Apple Pay. Google Pay is accepted anywhere Apple Pay is , and now a lot of people just tap their credit cards ( and what a fraud nightmare - the US banks seem happy to lose billions in fraud).

 

[Obioban]

Does this include opening up NFC on the Watch? Or phone only?

 

[dontwalkhand]

I'm mentally preparing myself for my grocery store (Kroger--which just recently began accepting Apple Pay) withdrawing from Apple Pay and creating an NFC app that can only be funded by debiting my bank account.

I more than likely think Walmart will leverage this more than anybody else. That and transit agencies who currently rely on QR codes.

 

[CarAnalogy]

Honestly this kind of sucks. Having a single wallet that has all cards in it is a big plus, making it very easy to switch what card you'll use each time (double click side button, swipe to change card). if card issuers start abandoning wallet and doing their own thing, you could have a single card as default, but to get to other cards you'd have to unlock the phone, open the app, and then you could pay.

Having seen how bad most third party vendors make their apps, I have to agree. On the other hand, they haven't been forced into Wallet by now so they probably never will be.

Maybe finally Home Depot will allow contactless payments if they can track me using their own app.

In practice it will be interesting to see if much changes.

 

[Seoras]

Being Australian where our big 5 banks tried to sue Apple twice to get access to NFC so they could get around Apple Pay fees I really hope it’s the same cost.

If my bank decides they would rather break the existing wallet setup for clunky direct apps I’ll be finding a bank who actually supports Apple Pay.

Right. I'm in NZ and my bank only just this year finally added Apple Pay support.
I dont want multiple wallets. I certainly don't want to empower my bank or any other more than they already are.
It's not in the consumers interests, this is only in the banks and retailers interests.

I had to facepalm at the "30% cut of each transaction" comment that has been top voted on here.
The ignorance...🤦‍♂️ Unbelievable.
Wikipedia cites "Financial Times reported that Apple receives 0.15% cut of US purchases made with the service"
That's what the banks want to claw back. Apple developed the technology and rolled it out.
In a free market they deserve to be rewarded for this, much used and excellent, service.
It's more secure than a bank card.

The EU comes across as a bit bitter and resentful that no one in Europe can hold a light to what they've done.
Nokia/Ericsson ruled supreme and lost it in 2007.